- Concerns over Bitcoin’s carbon impact have also taken a toll on the currency.
- Ethereum’s shift to proof-of-stake makes it a more substantial bet.
According to crypto analytics company Santiment, Ethereum’s leading smart contract platform faces a sell-off based on several parameters. Santiment, despite the recent rise in ETH supply on exchange platforms, maintains that this is a bear signal and that the general crypto market has rebounded.
The MVRV 7D indicator, which evaluates the short-term profit and loss of holders. Suggests that ETH is in a “danger zone,” according to the analytics business. While Ethereum’s network expansion and daily active addresses may indicate that the blockchain is acquiring more users, Santiment refers to these positive developments as evidence.
Ethereum Undervalued Relative to Bitcoin
According to the director of global macro at Fidelity Investments, the second-largest cryptocurrency, Ether, is undervalued relative to Bitcoin in a recent Twitter discussion. Timmer’s assessment is based on Ethereum’s quick expansion. He points out that Bitcoin has lost ground to its rival.
While bitcoin’s network is growing steadily, Ethereum’s network is growing rapidly. Scale vs Scarcity. /3 pic.twitter.com/2mzgJQEV8w
— Jurrien Timmer (@TimmerFidelity) December 17, 2021
According to Timmer, the growth of the “flippening” of Ethereum and Bitcoin will be an “interesting thing to watch” next year. This year, Ether has surpassed Bitcoin by gaining a stunning 260 percent. Currently, the second-largest cryptocurrency globally since the emergence of non-fungible tokens and decentralized finance, the most popular altcoin has been elevated to prominence.
Concerns over Bitcoin’s carbon impact have also taken a toll on the currency. According to JPMorgan analyst Nikolaos Panigirtzoglou, Ethereum’s shift to proof-of-stake makes it a more substantial bet than the main currency.
According to CoinMarketCap, the Ethereum price today is $3,893.36 USD with a 24-hour trading volume of $26,774,566,038 USD. Ethereum has been down 0.10% in the last 24 hours.
